Kazakhstan plans to build a major petrochemical complex by 2016 to produce higher-value products from associated petroleum gas that is currently mainly flared, according to an official at state-run KazMunaiGaz.
The government aims to go ahead with the $6.3 billion project in order to increase utilization of associated petroleum gas as it believes the situation with gas flaring in the country is "unacceptable," Raushan Sarmurzina, executive secretary of the Council on Science and Technology at KazMunaiGaz, said late Wednesday.
The complex will be built in the Atyrau region, where one of Kazakhstan's major oil fields, Tengiz, is located and which will become the key source for feedstock to the complex, she added, speaking at the CIS Oil and Gas summit in Paris.
There is already an agreement in place with Tengiz's operator on the issue, she said, providing no further details on the deal.
The first two stages of the complex, to be completed in 2016, will require 7 billion cubic meters/year of gas as feedstock and will see propylene and polypropylene output capacity of 500,000 mt/year and 800,000 mt/year, respectively, she said.
The third stage will envisage butadiene output at 250,000 mt/year, with gas from other major fields in Kazakhstan, Karachaganak and Kashagan as feedstock, she said.
This stage is currently expected to be built in 2016 as well but it is most likely to be delayed to at least 2018 because of delays in startup of Kashagan, she said.
